Is Buying a Fixer Upper Worth It?
Fixer-uppers have been very popular over the last few years. Partly, because people like making money. But mostly because Chip and Joanna Gaines did it for five years on HGTV. And their re-runs are still flooding the big screen in your house when you come home from work. This phenomenon is making people think that if they do what Chip and Joanna are doing, they're going to make just as much money as them.
Spoiler alert: you won't.
Like any house, a fixer upper is an investment. But most of the time, a fixer-upper could potentially make you more money in grand scheme of things. There are many factors that can make or break the bank, so it's important to be cautious when deciding on a home.
Fixer-uppers sound enticing to home buyers who want to flip it down the road. Their goal is to buy the house below market value and in turn, sell it years from now for more than they paid. However, this comes with a number of risks.
One of the biggest risks is unforseen problems. Sometimes, renovations can be way more expensive than you thought, and that can eventually put you in a hole that's hard to climb out of. A home inspection could help prevent this, but still, you never know. Buying a fixer-upper is a lot like gambling. If you're like me and bad at gambling, maybe stay away from the fixer uppers like I stay away from the blackjack tables.
There are some pros to buying a fixer upper as well! Don't think I was going to be a negatvie Nancy this whole time! With fixer-uppers, the entire house is your canvas. You can go full Chip and Joanna on it! Sledgehammers, chainsaws, crobars, oh my! In addition, you can decide what rooms get the most of your attention for a remodel.
Though, there are two important words when it comes to fixer-uppers: Walk Away.
Sometimes, it's best to just take a loss and walk away, or even walk away before you invest a single dollar or minute of your time. If the house you're thinking about renovating has termite damage or a serious mold infestation, it may be time to rethink your investment. The good news though, is that there are plenty more fixer-uppers out there.
And if you're in the Middle Tennessee area, I may know a few agents to help you find one!